Everything You Should Know About Your First Credit Card

Editorial Disclaimer:Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

Everything You Need To Know Before Getting Your First Credit Card

Anyone who has a credit card went through the process for the first time. It can be intimidating and maybe a bit thrilling to be granted this level of authority over your financial destiny. If you follow this information first, you’ll be ready to take the next step.

Why People Apply for a Credit Card

Trying to imagine modern life without a credit card is difficult. You can’t buy online without one in most cases. Most people like the ease it affords them. Using credit cards to make purchases allows you to streamline your cash flow and get what you need, when you need it. You don’t even have to keep a balance on the card. If you get the right kind of card, it can allow you to leverage your everyday purchases to earn significant rewards, including points, miles or cash back.

Considering Credit Card Offers

There are hundreds of credit cards out there, so you have to look for the one that’s right for you. Credit cards offer a list of terms, which usually include:

Special rates or promotions when you open the account

Fees for using the card, balance transfers or late payments

The interest rate you’ll have to pay on debt you carry

How long you have to pay before it tacks on interest

What happens if you miss a payment

Details on rewards programs

When you are first building credit, your options might not be as great as someone with excellent credit. Your goal should be to look for cards that have lower fees and interest rates, and better perks for spending.

How to Get a Credit Card for the First Time

Once you have selected a card and fill out an application, you might get a response fairly quickly. Some online forms are designed to look at your information and approve or deny within a few minutes. Be sure to use a trustworthy site, since you’re providing access to confidential records.

Most credit card companies look for similar information, such as:

Social Security number

Date of birth

Physical address and phone number

Monthly or yearly income

They need this information so they can check your existing credit and income to decide if you are a good candidate for the card. They’ll send the bills to the address, so it’s important to make sure it is accurate.

Opening Your First Credit Card Account

After you are approved for a card, find out information about your credit limit. If you have no or little credit, the company may offer a small limit to start. Before you can use the card, you might have to wait until it arrives in the mail. You may want to create an online account with the credit card company, so that you can be ready to activate the card and make payments. When the card shows up, activate it promptly and sign the back. Some companies allow you to activate it online, while others may ask you to call.

Using a Credit Card Wisely

Careful use of a credit card can help you build better credit. Keep in mind that applying for too many cards or running up a lot of debt can negatively affect your credit. It’s tempting to splurge, but you may regret doing that. Be sure to set your spending below what you can afford to pay back. Once you’ve made the purchase, you’re on the hook to pay it back. Create a reminder to pay the bill every month so you don’t forget.

Opening your first credit card account could be a step into a better financial future for you. If you go into it with your eyes open and all the information you need, you’ll make a better decision. When you are ready to take the plunge, apply for a credit card today.

Tool Type

Advertiser Disclosure

CreditSoup is an independent, advertising-supported comparison service. The card offers that appear on this site are from companies from which CreditSoup receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditSoup does not include all card companies or all card offers available in the marketplace. CreditSoup may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval.

Editor’s Rating

Our editors review each credit card and provide our ratings based on the features the credit card offers consumers including the fees, interest rates, benefits, rewards, and how it compares to other credit cards in its category. Card ratings may vary by category as the same card may receive a different rating based on that category.

CreditSoup.com may be compensated by companies mentioned on our site when a consumer’s application is accepted or approved by the company.

Advertiser Disclosure: CreditSoup is an independent, advertising-supported comparison service. The offers that appear on this site are from companies from which CreditSoup receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditSoup does not include all companies or all offers available in the marketplace. CreditSoup may use other proprietary factors to impact offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval.

The Credit Score data on CreditSoup is the VantageScore® 3.0 by TransUnion®.